UAE targets FDI into non-oil sectors

The UAE will focus on manufacturing, transport, renewable energy, agriculture and water sector in the short term to attract foreign direct investment (FDI), senior UAE officials said on Monday.

 Currently real estate, healthcare and education sectors attract high level of foreign investment inflows.

"In line with UAE Vision 2071, we need to encourage FDI to more specific industries and advanced sciences like Artificial Intelligence, cognitive science etc. We are also identifying sectors such as smart living and health and social services," the UAE's Minister of Economy Sultan bin Saeed Al Mansouri said during the opening address of Sharjah FDI Forum on Monday.

  Earlier, His Highness Sheikh Sultan Al Qasimi, Supreme Council Member and Ruler of Sharjah, inaugurated the 4th edition of the forum titled 'Shaping the future of economies'.

Al Mansouri noted that FDIs flow to developed economies declined in 2017 and in the first-half of 2018 but remained steady for developing countries.

"The negative trend in global FDI in 2017 was not similar in the UAE because the emirates achieved 7.8 per cent growth in FDI inflows in 2017, totalling $10.4 billion," he added. 

For 2018, the FDI are projected to reach between $11 billion to $11.5 billion.

He explained that the UAE Agenda 2021 has a focus on attracting qualitative investments targeted towards achieving sustainable development.

"The new FDI law will be integrated with several supplementary laws and a list of incentives to lead future FDI trends," he said.

Marwan bin Jassim Al Sarkal, executive chairman, Sharjah Investment and Development Authority (Shurooq) echoed the UAE Economy Minister's sentiments, saying: "When we say qualitative additions to the investment climate and opportunities, we are not just looking at attracting more money and new investors into existing sectors like agriculture, tourism, real estate, and others. That is only part of the 'qualitative investments' framework. Today, we need to look at boosting innovation, technology, research and development as we are focusing our resources and energies on building smart cities based on sustainability and green economy principles."

Juma Al Kait, assistant undersecretary of the Foreign Trade Affairs at Ministry of Economy, said the world should not be misguided by just the FDI numbers following the invasion of digital technology.

"The UAE will maintain first position in the region as we are heading towards knowledge-based economy. In this digital age, now we see huge revenues of companies that don't have much assets," he said. 

Malik Al Madani, director of Strategy of Futures Department and chief innovation officer of Federal Competitiveness and Statistics Authority, said the UAE's target under Vision 2021 is to make the UAE among the best countries and most competitive in the world. And under Vision 2071, the aims to make the country the best worldwide.

"Please keep in mind that we aren't chasing rankings, but we are looking for solutions that shows real results in FDI growth and benefit people as well," he said while giving the presentation at the forum.

Khaleej Times Contribution Time: 11-Dec-2018 09:44 (GMT)
Khaleej Times Last Update Time: 11-Dec-2018 09:44 (GMT)